In the 194/08 Decree the Italian government increased the 12% tax rate to 12.7%, the additional 0.7% for the benefit of the Italian horseracing sector. As a consequence of this action, the Italian Olympic Committee (CONI) took the opportunity to ask for a further 0.7% in financial support. Time constraints did not allow for this request to be accepted and considered, but it was submitted again in the final step of the approval procedure of the Financial Budget Law/Finanziaria for 2009.

Therefore, Article 2 (49) of the Finanziaria made more adjustments to the PREU tax, bringing it to 13.4%, while the total levy on the coin-op industry (including income for AAMS and the net providers) now stands at 14.2%. According to trade body Sapar, this is a totally unsustainable percentage for the industry, as it brings the tax on cash after the payment of winnings to 56.8%.

Sapar, along with the other Italian sector associations, reacted immediately to these tumultuous changes, demonstrating to politicians the negative effects on the industry that would arise from the implementation of such an increase. It must be recognised that this is a period when the government is putting very little effort into fighting illegality and the industry is already investing heavily in the transition from type 6 to type 6A machines (an investment of approximately ¤750 million).

Some politicians have begun to understand the negative impacts of the proposal and to discuss the potential solutions put forward by Sapar prior to the approval of the 194/08 Decree. The concept of the suggested "principle of proportionality of taxation" (meaning: more income, less taxation), is difficult to explain, but it was accepted as an amendment in the post- Christmas "Anti-Crisis"

Italy's ongoing row over unlicensed betting points has also escalated in the last 12 months, with the government regulator disconnecting a number of operators, including UK- owned Betshop, from the government's SOGEI reporting network, leaving them unable to take bets.

April numbers for gaming turnover in Italy once again emphasised a story of continuing growth in the sector, prompting the head of the AAMS regulatory authority to debut new measures aimed at revitalising the failing horseracing betting market.

The European Commission has sent an official request (as a "Reasoned Opinion") to Italy, requiring it to comply with the European Court of Justice (ECJ) judgement on horse-racing licences. By postponing the deadline for the implementation of new improved laws, the Italian government is risking major sanctions from the EC.

Over the past nine years, margin levels on sports betting have shown small declines in Italy, but with a favourable tax environment delivering net margins at close to 18 percent, they still remain extremely healthy compared to those earned in other markets.

Printer friendly version

Email this article to a friend

Bookmark this

---